True False Answer Bank ' The short-run elasticity of supply is larger than the longrun elasticity of supply because changes in equilibrium will adjust elasticity accordingly.1 i [ When the price increases. total revenue always increases because of the price effect. l When supply is perfectly inelastic, a change in demand has no effect on the price. J ' A key consideration as to whether the price elasticity of supply is elastic or inelastic is whether the good supplied is a luxury item. A Swi'er oor sweeper and a broom would have a positive cross-price elasticity of demand. ...L